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Despite high subsidy, Bharti gung ho on DTH biz model
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MUMBAI: The direct-to-home (DTH) industry has to incur Rs 2,000 per customer as subsidy at the moment, but with falling equipment prices, the business scenario will look up, Ajai Puri, chief executive, Bharti Telemedia, told ET.

Competition has become fierce since the entry of three new players, including Bharti. Other players in the market include Tata Sky, Dish TV, Reliance Big TV, Sun TV besides digital cable. There has been a sharp decline in one-time costs that subscribers have to bear, as monthly subscription plans have regulated price ceilings.

The initiation of DTH services was triggered by a government proposal to mandatorily digitise distribution of cable television nearly five years ago. The government has not implemented the proposal yet, but it continues to put a cap on distribution prices. “Box prices are coming down so quickly because India is one of the largest buyers in the market,” Mr Puri said. Prices fell 30% last year and would continue to fall at that rate for at least two more years, he said.

Full Story: Indian DTH Blog

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